They were in HO scale, so probably didn't tip your radar, but they had a large range of plastic RTR diesels, mostly older/more exotic types (Baldwins, Alco's etc) , but also F units. Arguably the best F units available before the recent Athearn/intermountain ones. They also did a few freightcar kits that were fairly good, some open hoppers of various types and some PRR/PC/CR ore gons. If they have just closed down and are not selling the firm on, that will be a loss to the hobby.
Staff of 10 people it must have been a big operation... Always sad to see a business in the hobby close. its just one less in a decreasing circle of stores.
Stewart Hobbies always provided a good product and customer support. Sadly, another American business down the tubes.
They were a manufacturer not a store. This is their info on the Walthers site: http://www.walthers.com/exec/page/manuinfo/v691 Quite a large product range.